Foundation News —Chip Edelsberg

Foundation News
—Chip Edelsberg, Executive Director

November 2008

The last six months have been economically disastrous. The potential consequences of loss of revenue and contributed income to Jewish nonprofits — which in many cases are seriously undercapitalized — are severe. The Jim Joseph Foundation is neither immune to effects of the market free fall nor insensitive to the plight of its grantee partners.

JJF is taking several steps to see if we support the operation of JJF’s major grantees. But we have not rushed to simply "push money out the door." We are contacting each of our major grantees to ask for information on the particular initiative JJF funds at the respective organizations. We are exploring with grantee partners if their organizations as a whole are experiencing difficulty. We want to understand if problems in other parts of the organization are negatively impacting the initiative JJF funds.

Among the tactics we are utilizing is offering to assist grantees in preparing timely reports that they must submit to JJF in order to receive an upcoming payment. In extenuating circumstances, we discuss advancing a future scheduled payment. On the other hand, the Foundation has considered deferring grant payments when a grantee informs us that they cannot obtain a fundraising goal that is a requirement of a matching or challenge grant that JJF awarded. While this postpones infusion of funding to be directed toward a desired result, it also provides the grantee the assurance that funding will be available when the grantee can absorb it at some point in the future.

Interestingly, a number of grantees with whom I have spoken recently do believe that some good will grow out of what is undeniably a bad time. Several Chief Executives are examining all facets of their organizations to ensure that the energy their staff is expending is aligned with the organization’s mission and strategic priorities. The current crisis compels them to re-examine their funding model. In some cases of which I am aware, CEO’s are exploring how to generate new sources of revenue. They want their organization to be strong in order that it can attract scarce resources.

There is no simple solution to the financial crisis which adversely impacts Jewish nonprofits. JJF’s perspective is to be deliberate and intentional in helping its major grantees to weather this current economic maelstrom.

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